Sri Lanka Pledges to Recover Stolen Rajapakse Billions

Sri Lanka's new government pledged Thursday to trace billions of dollars in stolen wealth stashed abroad by members of the previous regime and said experts from the IMF and World Bank had agreed to help.

Former president Mahinda Rajapakse and his powerful family are accused of siphoning large sums of money from the public coffers during his decade in power, which ended when he was voted out this month.

The new cabinet agreed at its first meeting Wednesday to track down the cash, and said forensic experts from India's central bank, the World Bank and the International Monetary Fund would assist.

Energy Minister Champika Ranawaka said a preliminary study by a local university showed the cost of new road construction in Sri Lanka in 2013 had been inflated by 200 billion rupees ($1.53 billion).

Rajapakse was the minister in charge of highways in the former administration.

Ranawaka accused Rajapakse and his immediate family, who controlled nearly 70 percent of the national budget, of siphoning off 700 billion rupees ($5.38 billion) from the national economy.

The new government of President Maithripala Sirisena took power on a pledge to investigate allegations of corruption under Rajapakse.

Rajapakse was the minister of finance, highways and ports, while all his immediate family members also held powerful positions in the administration.

The government also announced a 20 percent reduction in fuel prices and accused the former regime of imposing unfair taxes at a time when world oil prices had tumbled.

"The former regime used taxes from fuel and basic food items to finance their luxury lifestyles of racing cars and extravagance," Ranawaka said.

The two ministers said the cabinet also appointed a high-powered "rapid response team" to look into corrupt land transactions, stock market price-fixing and the abuse of state funds for political purposes.

The government will also review mega projects awarded to Chinese companies, including the construction of a $1.4 billion port city just next to the Colombo harbor.

Agreements with foreign lenders will also be reviewed amid allegations of huge corruption, the government said.